Massive data center coming to city (Mesquite News-2008)
The city council passed an ordinance on Dec. 15 to prohibit
the use of any groundwater that may lie under the property
at 3000 Skyline Drive.
The resolution changes the property to a Municipal Setting
Designation, which makes development of the existing building
more economically feasible by limiting the amount of environ-
mental upgrades that must be performed before the building
can be revitalized.
During environmental studies they usually test the water to
make sure it is free of toxins and suitable for use by
consumers. The ordinance that the council passed by a 6-0
vote classifies the water below the ground at 3000 Skyline
tainted, thus eliminating the need to purify the water during
development.
Tom Palmer, Manager Economic Development for the City of
Mesquite, addressed the council and stated that by passing
the ordinance it would allow the property to be sold and
developed.
The funding for the sale was contingent upon approval of
the council ordinance.
Brad Enloe, vice president of CAPSTAR Real Estate Advisors,
addressed the council with the intentions that his company
has for the property once purchased.
Enloe explained to the council their concept to remodel the
existing structure into a data center. Enloe told the members
of the council that data centers are highly secure buildings
that house expensive equipment that is maintained by highly
paid employees.
“These are very unique, very technologically advanced facilities,”
said Enloe. “They are very costly.”
Enloe also explained that they intended to make the facility
a multi or single unit development. They would build out a
shell for the company or companies to work from.
“We have a niche in the data center industry, a specialty in
the real
estate world, and we were able to identify 3000 Skyline as
quite a unique opportunity as a data center,” said Enloe.
Enloe also indicated that Lineage would lease the building
from CAPSTAR for a few months until they moved into their
new facility and then they will redevelop the property.
“We think this would be great for the City of Mesquite,” said
Enloe.
Councilman Dennis Tarpley inquired Enloe for information about
what exactly a data center does.
“A data center essentially is the housing for mission critical
information for businesses and other agencies,” said Enloe.
Enloe said that there were 10-12 substantial data centers in
the Dallas-Fort Worth area.
“This will be among the top 3 or four robust data center in
the country of the ones we are aware of,” said Enloe. “We have
an agreement with Oncor to expand the substation in the back
and this facility will probably have more power than any
facility in the country.”
Palmer informed the council that along the Union Pacific
Railroad are many fiber optic lines that make this building
attractive for a data center.
“There is probably more fiber along that railroad than anywhere
else in the metroplex,” said Palmer.
Palmer asked that the council table the proposal to approve
tax incentives for the development of the property until the
city staff could fine tune parts of the agreement to include
a 10-year term. The council unanimously voted to postpone the
incentive agreement until the Jan. 5 council meeting.